Non Resident Tax In Spain 2016?

Spanish taxes for non-residents – As from 2016, the overall flat revenue enhancement rate for non-residents is 24% ANd 19% if you’re a national of an EU/EEA state. Other financial gain is subject to Spanish non-resident taxes as follows: Capital gains ensuing from transferred assets square measure taxed at a rate of 19%.

Investment interest and dividends square measure taxed at 19%, though square measure generally lower through double taxation agreements;
Interest tax is exempt for EU voters;
Royalties square measure taxed at 24%;

Pensions square measure taxed at progressive rates, from 8% to 40%. To apply to pay revenue enhancement as a non-resident of European country, use Modelo 149. you’ll then build your revenue enhancement declaration on Modelo a hundred and fifty. If you a non-resident owner, you must build your tax declaration on Modelo 210.

Who has to submit a tax return in Spain?

Income tax deadlines in Spain – The Spanish tax year runs from 1 January to 31 December. The period for completing income tax returns is between 2 May and 30 June the following year. In your first year of tax residency in Spain, you’ll need to file a tax return.

Has Plusvalia been abolished in Spain?

What is the Plusvalia tax on Spanish property? – The Plusvalia property tax is one of two taxes that vendors pay when they sell a property in Spain, the other one being a capital gains tax. Conceptually, the Plusvalia tax is similar to a capital gains tax, as it is meant to tax an increase in value over the ownership period, but only on the value of the land.

The plusvalía is a local (municipal) tax charged by the town hall on properties when they are sold;
It is calculated on the rateable or market value of the property, and the number of years that have passed since the property last changed hands;

The objective is to tax the increase in the value of the land on which the property stands, some of which is due to improvements to the area carried out by the local government and the community at large. The base for this tax is the valor catastral (an administrative value that is usually lower than the market value, sometimes considerably so) of the property, though recent changes have also introduced a ‘real’ value based on market prices for calculating the Plusvalia.

The amount due in tax will depend on how long the seller has owned the property adjusted by a table of coefficients set by the tax authorities : the longer the period, the higher the amount of tax;
The Plusvalia was effectively abolished by the Spanish Constitutional Court in 2021, and then reintroduced by the government in record time to avoid many Spanish municipalities being pushed into bankruptcy by the removal of one of their main sources of income;

You can read about the recent changes in further below.

How is Plusvalia tax calculated?

The Plusvalia is calculated as a function of the catastral value of the land and the number of years of ownership (up to a maximum of 20 years). The higher the catastral value and the number of years of ownership, the higher the tax.

Can I transfer my Spanish property to my son?

How to transfer a property in Spain – In Spain, a property or a share of a Spanish property can only be transferred in one of the following ways:

Sale and purchase of the Spanish property
Gifting/donating the Spanish property
By inheritance of the Spanish property
Transfer of Spanish property in payment of a debt

So, if you plan to transfer the ownership of your Spanish property to someone else you will need to decide which form the transfer will take. Each of the methods of transfer will incur some form of Spanish tax (which is likely to be gift tax, property purchase tax, capital gains tax, inheritance tax or a combination of these). The amount of Spanish tax payable in each case varies, as it will be dependent on a number of different factors. These include:

the value of the property in Spain (this may be the cadastral ‘town hall’ value of the property as opposed to the ‘market’ value)
the location of the Spanish property (Spain has 17 autonomous regions which have different tax rates)
the age of the parties (some reliefs may be available)
whether or not the parties are tax residents in Spain
the blood relationship between the parties (different relatives pay different rates of tax depending on how closely they are related to the property owner).

In order to determine the most tax efficient way to transfer your property in Spain, it is advisable to obtain specific advice about which method would be best for you, given the your specific circumstances. If you have not yet bought your property in Spain, it may be better to consider buying property in Spain in the names of your children from the outset, as this may be more cost effective than transferring it later down the line.